100% tevredenheidsgarantie Direct beschikbaar na je betaling Lees online óf als PDF Geen vaste maandelijkse kosten
logo-home
Eerder door jou gezocht
Eerder door jou gezocht
logo
Financial Modeling Exam 1 Question and answers already passed 2024/2025 $12.99
In winkelwagen
Snel navigeren naar
Voorbeeld
  2.  
  3. REFM
  4.  
  5. REFM

Tentamen (uitwerkingen)

Financial Modeling Exam 1 Question and answers already passed 2024/2025
 0 keer verkocht
  • Vak
  • REFM
  • Instelling
  • REFM

Financial Modeling Exam 1 Question and answers already passed 2024/2025 Financial Modeling Exam 1 1. Explain the differences between Excel functions PMT, IPMT, and PPMT. What type of cash-flow stream is each of these based on? When should each of these be used? Which vary with time in your amor...

[Meer zien]

Voorbeeld 2 van de 6  pagina's

Document informatie

  • 3 oktober 2024
  • 6
  • 2024/2025
  • Tentamen (uitwerkingen)
  • Vragen en antwoorden

Onderwerpen

Geschreven voor

  • REFM
  • REFM

Verkoper

avatar-seller
Carzola98

Ontvangen beoordelingen

Voorbeeld van de inhoud

Financial Modeling Exam 1
1. Explain the differences between Excel functions PMT, IPMT, and PPMT.
What type of cash-flow stream is each of these based on? When should each
of these be used? Which vary with time in your amortization schedule? Why?
- correct answer ✔Each of these is for use with an annuity, or annuity-type
cash flow (constant cash flows over a set period of time at regular intervals).
PMT calculates the total payment, which is the same for every period. IMPT
calculates the interest payment for each period, which will differ as the
remaining balance on the loan changes over time. PPMT calculates the
principal payment for each period, which will also change over time. These
change over time because the interest goes down as the balance of the loan
goes down, so more of the total payment goes to principal, and less goes to
interest. PMT should be used to calculate the overall payment for every
period, while IPMT and PPMT should be used for each period individually
(because they change each period).


1. What type of cash flow stream does Excel's PV and NPV functions not
handle well? - correct answer ✔These functions do not handle perpetuities
(cash flow streams that continue forever) very well. They only handle cash
flow streams with finite cash flows. (They also do not handle cash flow
streams that do not occur at regular intervals. For example, if you got one
cash flow in a year, another in 18 months, and a third at 36 months. You can
make this work in those formulas, but they will not deal with it themselves. We
only talked about part of this in class, which is these functions can only do
calculations for finite cash flow streams that occur in regular intervals).


In class, we tied our dividend forecast to sales. Why is this a bad assumption
in reality? In your answer, explain this both from a mechanical perspective,
and from the perspective of how this differs from what companies actually do.
What would be a more reasonable assumption? - correct answer ✔There are
two problems with this assumption. First, it's not what firms actually do. Most
firms try to keep dividends constant, or want dividends to grow at a constant
rate. (So they really would have a separate plan for dividends, and change on
things to make this work, like issuing new debt or equity if needed). Second,

, sales do not really translate directly to cash, and we need cash to pay
dividends. A better assumption would be to tie dividends to something closer
to cash, like net income. (You could also make an argument for basing
dividends on cash flow from operations and investing, since this tells you how
much cash flow you have before financing. Or you could assume that the firm
will keep dividends constant, or that dividends will grow at a constant rate.)


Extra principal pay - correct answer ✔Present Value of the difference
between what you will owe minue what you want to owe.
Use an annuity formula over that time period


How does Excel treat a PMT function - correct answer ✔Excel treats this as
if you're the borrower. Therefore FV is negative because it is an extra
payment the borrower is making


Sensitivity Analysis vs. Scenario Analysis - correct answer ✔Sensitivity
changes one variable and looks at the change in the dependent varible while
the scenario changes up to two variables and looks at reaction in the
dependent variable


What is Excel doing in the Goal Seek function? - correct answer ✔plugs in
slightly different numbers until it finds the solution to the answer. For example,
it will mess with different IRR levels until it finds one that sets NPV=0


What is Excel doing in the NPV function? - correct answer ✔Excel assumes
that your time starts 1 year from now, which is why you take out CF0


Change in NWC is listed as negative because - correct answer ✔it is listed
as a decrease on the statement and it is a cash outflow

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

Bewezen kwaliteit door reviews

Studenten hebben al meer dan 850.000 samenvattingen beoordeeld. Zo weet jij zeker dat je de beste keuze maakt!

In een paar klikken geregeld

In een paar klikken geregeld

Geen gedoe — betaal gewoon eenmalig met iDeal, creditcard of je Stuvia-tegoed en je bent klaar. Geen abonnement nodig.

Direct to-the-point

Direct to-the-point

Studenten maken samenvattingen voor studenten. Dat betekent: actuele inhoud waar jij écht wat aan hebt. Geen overbodige details!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.

Van wie koop ik deze samenvatting?

Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper Carzola98. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor $12.99. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 64670 samenvattingen verkocht

Opgericht in 2010, al 15 jaar dé plek om samenvattingen te kopen

Begin nu gratis

Laatst bekeken door jou

Tentamen (uitwerkingen) ·

(0)

NR 302 HEALTH ASSESSMENT I EXAM 3F QUESTIONS WITH 100% SOLVED SOLUTIONS

Tentamen (uitwerkingen) ·

(0)

Florida 4-Hour Traffic School Exam Answers 2023 with complete solution

Tentamen (uitwerkingen) ·

(0)

Texas Roadhouse bar test with ounces Question and answers rated A+ 2023

Tentamen (uitwerkingen) ·

(0)

SIFT Army Aviation Information Test exam 2023 with 100% correct answers

Tentamen (uitwerkingen) ·

(0)

NSG170 PERFUSION (Lewis Chapter 32 Hypertension) – Questions And Solutions

Tentamen (uitwerkingen) ·

(0)

URI NG BILINGGUWALISMO SA BATA-Questions with Correct Answers/ Verified

Voordeelbundel ·

(0)

3CX Bundled Exams with Complete Solution | Verified Answers | 2024

Tentamen (uitwerkingen) ·

(0)

CPCM Guiding Principles Practice Exam Questions and Answers 2024

Tentamen (uitwerkingen) ·

(0)

CDASA 8 - INT-Specific Collection Systems correctly answered 2024 passed
$12.99
  • (0)
In winkelwagen
Toegevoegd